Next Wave of ID Thefts Targeting Kids' SSNs
Identity thieves are beginning to steal Social Security numbers of children, long before they're ready for a savings or checking account or a credit score - and that could threaten the nation's credit system, said an Associated Press report (TheSunNews.com Aug. 3).
The thefts could be a problem for credit unions and other financial institutions because they rely on credit scores from FICO, Experian, TransUnion, and Equifax. But those scores could contain false information, planted by people who use stolen Social Security numbers to piggyback on the credit of someone else, according to Kansas City law enforcement agents.
Kansas City Assistant U.S. Attorney Linda Marshall and Julie Jensen, a special agent with the Federal Bureau of Investigation's office in Kansas City, said that in the fraud, online businesses use computers to locate dormant Social Security numbers, usually of children or long-term prison inmates who don't use them. The companies sell the numbers under another name to people who establish phony credit and run up huge debts without intending to pay.
The sellers skirt the law by referring to the Social Security numbers as "credit privacy numbers" or CPNs. They are also called "credit profile numbers" and "credit protection numbers."
Jensen discovered the scheme and says it is easy to create a false credit score using the CPNs, said the article.
The crooks have years to use the numbers before the child is old enough to apply for credit. That makes the fraud difficult to detect, and authorities can't estimate how prevalent the practice is.
The fraud is emerging because 25.5% of consumers have credit scores of 599 or below, which means they're poor credit risks. Many credit decisions are based on the credit scores provided by FICO and the three major credit reporting bureaus. But Jensen says those credit scores could contain false information.
FICO said it has tools for businesses to protect themselves, but the tools are expensive, the article said.
IMPORTANT MESSAGE – SCAM ALERT – PLEASE READ IMMEDIATELY
An important issue regarding a magazine sales scam has been brought to the attention of Mutual Security Credit Union by one of our members.
There is a scam currently being run throughout the country by an unlicensed company titled HERITAGE PUBLICATIONS / HERITAGE MARKETING. According to all reports this first surfaced in February of this year and is being perpetrated throughout the entire United States.
The Scam: Two young men or women will approach homeowners ostensibly to sell magazine subscriptions. For every subscription purchased, a subsequent subscription will be donated to an active duty soldier and a portion of the proceeds will also go to underwrite a program for youth to compete in an 8 week soccer program in Europe. In addition there are reports that Heritage Marketing are contacting people via the phone advising them that have won a fictional contest and request personal information such as Social Security Numbers and Account/Routing and Transit Numbers.
The Result: The subscriptions never materialize and the checks given to the sales people are promptly cashed with a stamped endorsement under the HERITAGE MARKETING banner. They use the checks to steal sensitive and confidential information that lead to further theft and possible identity theft.
Action: Do not be taken in by this scam. If you are visited by sales persons (or contacted via telephone) relaying this story you should not let them into your home, purchase anything that is being sold, give them any personal information including but not limited to credit card numbers or checking/savings account numbers and you should immediately contact your local authorities to report this activity in your neighborhood.
Fraud Email Phishing Activity Reported
The National Credit Union Administration (NCUA) is reporting recently simulated NCUA email boxes. The fraudulent emails solicit credit union member participation in an Online Survey or Member Survey, and promise compensation of $40 as an inducement to respond to the email.
The emails are fraudulent, and may be an attempt to obtain confidential member information. NCUA does not solicit such information from credit union members. This is a phishing activity with no NCUA activity or approval. If you have received these emails please do not respond. If you have any questions or concerns please email NCUA at pacamail@ncua.gov.
Phone Scam
A central Connecticut credit union has reported that their members have been calling and asking if someone from the credit union has called to say that their account has been compromised and to press 1 and provide information in order to reinstate the account.
This type of phone scam was used a number of years ago and has been recalculating of late.
This is a blatant attempt to obtain personal and confidential information. Members should simply hang up to end the call.
Secret Shopper Schemes on the Increase
The Internet Crime Complaint Center (IC3) said Wednesday fraudsters have learned that many retail and service corporations - including credit unions - hire evaluators to perform secret or random checks on their service or their competitors, and the fraudsters are capitalizing on this.
Victims receive e-mail or U.S. mail urging them to apply as a mystery shopper. Applicants are asked to send a résumé and are subject to a background check before being hired. The fraudster sends the shoppers a check with instructions to shop at a specific retailer for a specific length of time and spend a specific amount on the store's merchandise. The shopper is to note the environment, color, payment procedures, gift items, and shopping/carrier bags, and report back to the employer.
The second trip evaluates the ease and accuracy of wiring money from the retail location. The money is included in a check received by the victim shopper. The remaining balance is the employee's pay for the assignment. After the merchandise is purchased and the money wired, the shopper learns the check is counterfeit, and the shopper is responsible for the money lost and fees incurred.
In other versions, applicants are requested to provide bank account information to have money directly deposited into their account. This gives the fraudster access to the victim's accounts and money, making the victim an identity theft victim.
The e-mails also have a pop-up that cannot be easily closed. The user clicks on the pop-up to purchase the software and must fill out a form that collects payment information. The user is charged for bogus software. Sometime malicious codes are installed on the computer.
Credit Union National Association is aware of phone calls, text messages, and emails being made about:
